MORTGAGE RATES ARE FALLING: A GREAT OPPORTUNITY TO BUY PROPERTY IN SWITZERLAND

04/06/2025

The Swiss mortgage market is currently experiencing a particularly favourable period for prospective homebuyers. Interest rates are declining, making financing more accessible for property purchases. In this article, we explore the current trends in mortgage rates, future projections, and how MDA Group can support you in achieving your real estate goals.

CURRENT MORTGAGE RATE TRENDS

As of June 3, 2025:

• 5-year fixed-rate mortgage: rates range between 1.13% and 1.38%, depending on the financial institution.
• 10-year fixed-rate mortgage: rates vary from 1.54% to 1.79%.
• SARON-based mortgage: the reference rate is currently at 0.25%, with expectations of further declines in the coming months.

These are some of the most favourable conditions seen in recent years, allowing long-term loans with manageable monthly payments.

FUTURE OUTLOOK

Forecasts suggest that mortgage rates may continue to decline or stabilise at low levels. The Swiss National Bank (SNB) recently lowered the key interest rate to 0.25% and has not ruled out further cuts, even into negative territory, to counter the appreciation of the Swiss franc and support the national economy.

IMPLICATIONS FOR BUYERS AND INVESTORS

Now is a favourable time for both private buyers and property investors:

• First-time buyers: benefit from lower monthly payments and attractive financing terms.
• Real estate investors: low rates increase the profitability of rental properties, making investment purchases more appealing.
• Moreover, the new “Basel III” regulatory package, effective from 2025, will require banks to hold more capital for certain mortgage loans. This could impact future lending conditions, making it even more advantageous to secure a mortgage now rather than later.

MDA GROUP: YOUR TRUSTED REAL ESTATE PARTNER

At MDA Group, we are ready to support you at every stage of your real estate journey:

• Tailored advice: we assess your financial situation to identify the best solutions.
• Access to a wide financial network: we collaborate with various institutions to offer the most competitive conditions on the market.
• Comprehensive support: from finding the ideal property to contract signing and beyond.

CONTACT US TODAY

Don't miss this unique opportunity in the Swiss real estate market. Get in touch with MDA Group for a free consultation and discover how we can help you make your dream home a reality!